Mar 07,2021 | 5 min read

Underwriting of Debentures Agreement | Download Free Templates

What is the Underwriting of Debentures Agreement ?

Underwriting is the process under which an independent underwriter or underwriting firm agrees to subscribe to the securities ( shares , debentures etc ) of the company in the event the securities are not subscribed by the public to the extent of minimum subscription requirement as prescribed by law. The underwriter in lieu of subscribing the securities is paid a percentage of commission on the issue price of securities.

Why is it important ?

1. Underwriting helps in achieving the minimum subscription requirement of securities .

2. The company can easily lure the investors to invest based on the reputation of the underwriters.

3. Since underwriters are highly qualified financial institutions with a wide customer base , therefore underwriting of issues helps the company in wide public distribution.

4. Underwriters are market experts which can help the company in strategising the issue.

5. Apart from underwriting commission, no additional cost is to be incurred by the company on advertisement and sale of the issue.

  • Do you want the agreements/ contracts personalized for you instantly? 
  • Please REGISTER and avail several other benefits

 


Need Free Legal Advice or Assistance Online?


For any Contracts & Legal Documentation / Agreements related matter, please Post Your Requirement anonymously and get free proposals OR find the Best Contracts & Legal Documentation / Agreements Lawyers and book a free appointment directly.


POPULAR READS

"Disclaimer Generator"


"Contract Management"


Letter of Intent | Download Free Templates


Minutes of Meeting | Download Free Templates


NOTE PURCHASE AGREEMENT | Download Free Templates


PROMISSORY AGREEMENT | Download Free Templates


WHF Letter | Download Free Templates


"Knowledge Dossier - 12th April, 2021" By Lex Comply


"Arbitration During and Post COVID19: A Perspective"


ABOUT THE AUTHOR


Lawyered Team

Lawyered Team

MORE IN BUSINESS

"Contract Management"

Apr 15,2021 | 8 min read

User Agreement | Download Free Templates

Mar 23,2021 | 5 min read